Fixed Income And Currency Market

30 Jan 2022

RBI to have a difficult task of managing inflation and borrowing

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Given expected growth of 13% in fiscal 2022-23 and a fiscal deficit pegged at 6% of GDP, net government borrowing is likely to be at around Rs 7 trillion. Coupled with state government borrowing the supply will still be heavy and RBI will be hard pressed to manage the borrowing if inflation continues to rise.

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Arjun Parthasarathy
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